FinTech Unicorns and 3 Lessons They Teach Us

By: | July 28th, 2020

Image by Gerd Altmann from Pixabay

The financial technology industry has seen a steady increase in user adoption and income. These two components have propelled the Fintech market growth to great heights. Experts believe the financial services market will be worth about $26.5 trillion by 2022. Fintech unicorns such as Robinhood or Stripe are spearheading this industry quite expertly and profitably.

So, what have these unicorns been doing differently, and what lessons can you take from them to steer your fintech course successfully? The financial technology domain is quite competitive – new startups are sprouting up every day. Therefore, to stay ahead of rest, Fintech unicorns have had to put in place a range of measures.

3 Important Lessons That Have Made Fintech Unicorns Role Models in the Industry

1. Focusing on User Experience Through User-Friendly Designs

Not all of us are fond of finances. We either find it complicated, confusing, or just boring. Steve Jobs came up with a User Experience dogma that has been the foundation stone for now leading Fintech unicorns. The phrase “Design isn’t about look, it’s about work.”, summarizes the immense value of putting user-friendliness first in your product development process.

Fintech applications should guarantee a simple and clear understanding. Additionally, to achieve a good UX, your platform’s interface should be free from clutter and concisely display what the user is looking for.

Some of the best performing Fintech giants employ functional animations and the very fundamental minimalist applications. This is how Numbrs was able to raise $40 million in funding, a fete that earned it the unicorn status in the financial technology world.

2. Addressing Customers Problems

Fintech apps that have successfully stayed on top have one thing in common; fixing consumers’ pain points. If you’re keen enough, you must have realized that Fintech apps always fulfill a core purpose, which depends on the niche the fintech serves.

For instance, the Cleo app is one perfect example of a Fintech guru that can help you start working with a budget.

PayPal is designed to make global money transfer swift and reliable, a challenge that worried folks looking to send money to friends and family.

Robinhood is an application that is helping to make investment easy. It is a great tool, especially if you’ve been missing out on the benefits of custom accounting solutions.

To follow in the footsteps of these Fintech companies, you must first know your target audience. Only then will you be able to address their pain points. You want to be able to provide a solution that they will find more convenient than heading to a bank. PayPal did so amazingly, and now you don’t have to look for a Western Union branch, head over to the bank, or browse through a bank’s rigorous mobile application processes to send money.

Fintech startups should realize that their main competitor is not the unicorns but the traditional banks. Therefore, to steer your growth forward, go the unicorn way, and understand your competitors’ challenges. These challenges equate to your potential customers’ problems. Find a way to navigate around these problems, and you’ll have stolen your competitor’s customers right under their nose.

3. Making Use of Interactive Elements

Your users get bored quite quickly – and unfortunately, a bored customer is a lost customer. The best way to keep your users engaged and active on your platform is by making use of interactive elements.

Somer millennials and a higher percentage of Gen Z are the biggest consumers of Fintech services. Companies that have made a breakthrough in this sector have achieved this because they decoded the secret to keeping their audience engaged.

You need to make the usage time just long enough to convert users into leads and customers. To do this, deploy unconventional in-app elements such as contests and games. This can also be an excellent way to educate your users about new products or feature upgrades. What the users get for engaging with these interactive elements could be event tickets, price discounts, or gift cards.

These 3 lessons can go a long way in helping any startup Fintech rise up and reach the heights only a few unicorns have achieved. Moreover, for maximum results, these lessons should be implemented concurrently.


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